Solved

If Two People Have Identical Cobb-Douglas Utility Functions, Then in Every

Question 21

True/False

If two people have identical Cobb-Douglas utility functions, then in every Pareto optimal allocation, they must consume all goods in the same proportions as each other.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: Morris has the utility function U(b, w)=

Q17: If there are consumption externalities, then a

Q18: Abduls utility is U(X A, Y A)=

Q19: A small economy has only two consumers,

Q20: Mutt's utility function is U(m, j)= max{3m,

Q22: Tamara and Julio consume only bread and

Q23: If demand varies continuously with price, then

Q24: A small economy has only two consumers,

Q25: Jack Spratt's utility function is U(F, L)=

Q26: Amaranda and Bartolo consume only two goods,